In an official release, which did not specify the financial details of the deal, DIVA said, the investment is a strategic move that positions both companies in a sweet spot to accelerate exponential growth and tap into one of South East Asia’s billion-dollar businesses, according to an official release.
DIVA is a startup that aims to modernise the small and medium enterprises (SMEs) operating in Indonesia, empowering them with both technology and innovative products.
The company provides a unified multi-payment device called DIVA Smart Outlet (OS) that can process various cash and non-cash payments as “point-of-sale” (POS) and offers digital products, as well as an AI-empowered integrated messaging platform called DIVA IIM, which rides on popular applications such as WhatsApp, LINE, Telegram, and Facebook Messenger.
It recently raised $43 million in an oversubscribed IPO round on the IDX, in which it offered 400 million new shares.
DIVA is a subsidiary of Indonesian investment firm Kresna Graha Investama, which has taken two other tech startups to go public on the IDX, namely M Cash and NFC Indonesia.
In Pawoon, DIVA will be investing in a startup that offers a software and hardware solution to Indonesian small and medium enterprises, allowing businesses to manage their inventory and payment.
The company, which raised its Series A funding round from local VC firm Kejora Ventures last year, claims to be utilised by more than 10,000 merchants, spread over 200 cities nationwide.
DIVA Director Dian Kurniadi said, Pawoon offers an interesting business expansion and potential growth for the company into the F&B industry, which is dominated by SME players.
Pawoon founder and CEO Ahmad Gadi said the fresh capital from DIVA will be directed to product development as well as accelerating merchant acquisitions across the country.
The investment received by Pawoon further heats up the competition in Indonesia’s mPOS space, which is seeing more capital being pumped into the industry.
In September, local Mpos Moka secured a $24-million Series B funding round led by Sequoia India, while another contender, Cashlez, is reported in talks to raise a fresh $5 million funding round.